The Top Tips When Buying Residential Property Anywhere In Australia
By Ankita Tripathy
11 October, 2023
Real Estate
If you are thinking of buying a residential property then it’s likely that you are doing it because it will be a place for you and your family to live or you might be investing in such a thing from a business point of view. Maybe it is your hope to purchase the property at a below-market price and then flip it so that you can make a considerable profit in a very short space of time. For the vast majority of Australians however, buying a residential property is all about putting a roof over their head and providing comfort and security for those that they love. Buying a home is probably the single biggest investment that you will make in your life and so it requires a level head and research on your part.
Due to the fact that this is an incredible amount of money to be spending, you really do need to pull out all the stops to make sure that you are properly protected in the event that something goes wrong. A number of people buy properties and think that they own it outright only to find out much later that access can be restricted or they might not even own pieces of land on which the property sits. This is why one of the first things that you need to do is take out title insurance and if you’re thinking to yourself what is title insurance, then you should know that it is a policy that protects you when it comes to ownership title when you buy a property.
You may not be aware of it but there could be issues regarding property taxes that have not been paid, fraudulent paperwork that shows the property is smaller than it actually is or maybe someone else claims that they own the property. Whatever the circumstances, it is important that you protect yourself at all times and the following are just some other top tips when buying residential property anywhere in Australia.
- Stay within your budget – It makes perfect sense that you would want to talk to prospective lenders before you actually start looking for your ideal property. They will base a decision on your current salary and your ability to earn over the next 25 to 30 years. They may come up with a figure like $500,000 and just because you have been given this approval for a mortgage size, it doesn’t mean that you have to immediately start looking for a property that is worth this amount of money. Think about other things that need to be paid over the lifetime of a mortgage like insurance, essential repairs and maintenance, and other monthly bills.
- Buy property in places that you know – It is better the devil that you know as they say so make sure that you buy a residential property in an area that you are familiar with so that there will not be any surprises further down the line many years later. It is important that you love the property that you are considering buying but you also need to make sure that the neighborhood is perfect for you and your other family members. If you see any red flags at all, move on and look for something better.
- Property doesn’t always go up in price – Statistics tell us that over the past 10 to 15 years, properties in Australia have risen in value. But is important that you realise that this isn’t the rule of thumb. The housing market does fluctuate but it can also go in the opposite direction as well. Make sure that you buy the property because you love it and you can picture yourself spending the rest of your life here because, over the long term, it may not increase in value by any great degree.
- Carry out a home inspection – It doesn’t matter how good the property looks because you are untrained eye will not be able to see things that a professional can. This is not the time to be cutting corners and trying to save yourself money and if you pay for a professional home inspection then it will be very much worth the investment. If there are any issues, they will be able to bring your attention to them and you may even be able to negotiate the price down as well. This is essential peace of mind that every prospective property owner should have.
- Figure out your down payment – It is extremely unlikely that your lender will provide you with a mortgage without you having to put down some kind of down payment first. Try to put down as much money as you possibly can but don’t leave yourself short so that you can’t pay for essential repairs and maintenance for the property over the coming years. It might also be a good idea to take out some kind of insurance policy that can protect you in the event that you lose your job and that you cannot make your mortgage payments.
It is very easy to fall in love with the first residential property that you see and while it’s great that you have found something that you feel that you can really live in, just don’t buy the first one that you see and take time to have a look around and see if there is anything else that meets your criteria. By looking at other properties, you can compare and contrast and figure out the benefits and drawbacks of each. By looking at more properties all around Australia, you get a much better understanding of the property market what is available, and the prices that are currently on offer. If you follow the above pieces of advice then there’s no reason why you can’t find your dream home so that you and your family can start living your life knowing that you have a solid roof over your head.
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